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Media CoverageDo Kwon at the crossroads of extradition to South Korea or the U.S.; what about compensation for domestic victims?
With the arrest of Do Kwon (32), CEO of Terraform Labs and the main culprit behind the collapse of the Luna and Terra cryptocurrencies, both South Korea and the United States are competing for his extradition. The decision by Montenegrin judicial authorities is drawing attention, as the possibility of compensation for South Korean victims depends on which country Do Kwon is extradited to. (omitted) Attorney Pureun “Ian” Hong of Decent Law Firm, who specializes in cryptocurrency fraud, stated, "If the investigation or trial is led by South Korea, hidden funds could be uncovered, and the court may allocate them to domestic victims. If Do Kwon is brought to South Korea, the prosecution will likely take measures to preserve any criminal proceeds he has hidden. Once a final judgment is issued, the funds will be distributed to the victims, providing relief." Hong added, "There is a possibility that Do Kwon could stand trial in the U.S. and then be extradited back to South Korea. However, the fact that the U.S. has also requested his extradition shows their intent to punish him. If he is prosecuted in the U.S. and then sent to South Korea, it may be too late. On the other hand, if he is extradited to South Korea first, it would make it more difficult to provide relief for U.S. victims."
2023-03-30 biz.chosun -
Media Coverage
Attention focused on the 'securities nature' of Terra-Luna coins.
With the arrest of Do Kwon, CEO of Terraform Labs and the main culprit behind the 'Terra-Luna' crisis, which wiped out 52 trillion won in market capitalization, attention is now focused on whether he will be extradited to South Korea and what punishment he may face. While the timing and possibility of his extradition to South Korea are being closely watched, the assessment of whether Terra-Luna coins qualify as securities is expected to be a key factor. (omitted) Hyeonsu “Elliot” Jin, managing partner at Decent Law Firm, stated, "If both countries request extradition, the Montenegrin government will decide based on their judgment where he will be sent. Since Do Kwon holds South Korean nationality, it is more likely that he will be extradited to South Korea rather than the United States." Jin also added, "If Do Kwon is extradited to South Korea and stands trial, regardless of the punishment he faces, it could mark the starting point for determining whether virtual assets qualify as securities."
2023-03-24 etoday -
Media Coverage
Financial Supervisory Service: 'Trip to the U.S. SEC, related to disclosure review.'
The Financial Supervisory Service (FSS) clarified that reports suggesting they are planning a trip to the U.S. Securities and Exchange Commission (SEC) to assess the security nature of virtual assets (cryptocurrencies) are partially inaccurate. (omitted) Hyeonsu “Elliot” Jin, managing partner at Decent Law Firm, commented, "Since much of South Korea's legal framework has already been adopted from the U.S., introducing independent policies on virtual assets carries significant risks. The SEC's assessment and regulation of virtual assets as securities are likely to be similarly applied in South Korea as well."
2023-03-20 hankyung -
Media Coverage
Is the 'illegal listing' time bomb at cryptocurrency exchanges about to explode?
Following Coinone, it has been confirmed that employees of the domestic cryptocurrency exchange Bithumb are also under investigation by prosecutors for allegedly listing cryptocurrencies in exchange for bribes. Experts point out that in order to break the unfair listing practices in the cryptocurrency industry for monetary gain, institutional reforms and stricter penalties must be implemented. (omitted) Pureun “Ian” Hong, managing partner of Decent Law Firm, specializing in virtual assets, stated, "If an exchange lists coins not based on its own criteria but rather through illegal payments received by employees in charge of listings, charges such as breach of trust could apply. However, since the current punishment is lenient, if the Digital Asset Basic Act, which is currently being discussed in the National Assembly, is passed, stronger regulations will likely be necessary to address such issues."
2023-03-17 biz.chosun -
Media Coverage
The recipient of the bribe was not detained, but the giver was arrested, sparking controversy over fairness in the court's decision.
Coinone is currently under investigation by the prosecution for allegations of receiving kickbacks through a broker during the listing of PICA Coin on October 22, 2020. However, while the broker (charged with bribery) has been detained, it was revealed later that the former employee (charged with receiving bribes) was not detained, sparking controversy over fairness in the Southern District Court. (omitted) Pureun “Ian” Hong, a virtual asset specialist and managing partner at Decent Law Firm, stated, "The fact that the prosecution requested an arrest warrant shows their strong suspicion of the suspect’s involvement.' He further explained, 'It is unusual for the broker (bribery) to be detained while the former employee (receiving bribes), who faces a potentially higher sentence, is not." He added, "An arrest warrant must be issued by the court for the prosecution to conduct an arrest investigation, and with the warrant denied, the prosecution has no choice but to conduct a non-detention investigation. If the prosecution finds it absolutely necessary, they could reapply for the arrest warrant, but it's unclear whether they will do so at this point." Furthermore, he explained, "The decision to detain someone is not based solely on the charge. If the broker committed bribery in multiple places, indicating more severe wrongdoing, or if there is evidence of tampering or flight risk, then it's entirely possible that a different outcome could occur compared to the former employee, Jeon."
2023-03-09 NBN NEWS -
Articles
Dubai VARA Virtual Asset Regulatory Trends
Dubai is emerging as the next global hub for virtual assets. The world’s largest virtual asset exchange, Binance, has signed an agreement with the UAE’s Securities and Commodities Authority (SCA) to establish a global hub for virtual assets. In early 2022, the UAE enacted the Dubai Virtual Assets Law (Law No. 4 of 2022 Regulating Virtual Assets in the Emirates of Dubai: "DVAL"), creating a legal foundation for virtual asset businesses. This law provides predictability to businesses and investors, fostering industry growth. Based on DVAL, the Dubai Virtual Assets Regulatory Authority (VARA) was established. VARA issues licenses for virtual asset service providers (VASPs) and oversees their operations. Activities covered by VASPs include the trading, exchange, transfer, storage, and management of virtual assets. However, despite the enactment of DVAL, certain activities overlap with regulations under existing federal laws. Businesses engaged in financial services related to virtual assets, such as payment services, must comply with federal laws and acquire additional permits. Prospective operators should take this into account. VARA Licensing Process To obtain a VARA license, virtual asset businesses must go through the following four stages: Provisional Permit Preparatory Permit MVP (Minimum Viable Product) Operating Permit FMP (Full Market Product) Permit As of February 28, 2023, no FMP permits have been issued. VARA has only granted Provisional and Preparatory Permits thus far. Exchanges such as Binance, Bybit, Crypto.com, Equiti, FTX, Huobi, and OKX have proactively applied and are under review. Binance and FTX received MVP Operating Permits. However, due to recent developments, FTX’s process has been suspended. VARA’s VASP licenses involve rigorous requirements, making them challenging to obtain quickly. Key Considerations To legally operate a virtual asset business, such as an exchange in Dubai, obtaining a VARA license is mandatory. Dubai’s ambition to become a hub for the virtual asset industry extends beyond infrastructure, with proactive national policies and regulatory frameworks in place. Since national policies on virtual assets differ widely, and licensing and regulatory details vary significantly, confusion can arise. Nevertheless, businesses aiming for global markets must stay informed about regulatory trends in each country and take proactive steps to comply.
2023-02-28